Telecom Arg 2022 (IFC-46720)

Countries
  • Argentina
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 27, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
TELECOM ARGENTINA S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 11, 2022

Disclosed by Bank Jun 30, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank´s website, the proposed investment consists of a financial package to Telecom Argentina S.A. (“Telecom” or the “Company”) for an aggregate amount of up to US$202 million (“m”), comprising (i) an A loan, for IFC’s own account, in an amount of up to US$50m; (ii) a B loan, for the account of the participants, in an amount of up to US$148m; and (iii) an overlay interest rate swap for a loan equivalent exposure of up to US$4m. The purpose of the investment is to fund the expansion of the Company’s 4G mobile and FTTP/B (fiber-to-the-premise/block) fixed broadband coverage, and to upgrade the existing network’s capacity, speed and energy efficiency (the “Project”). The Project is expected to result in improved quality of digital connectivity, increase subscriber growth, improve energy efficiency of the network, and benefit underserved areas such as La Consulta in the Province of Mendoza, Villa El Salvador in San Juan or Rivera in the Province of Buenos Aires.  The enhancements to existing facilities will not only expand connection speeds, but  also  incorporate  new  technology  that  measurably  improves  energy  efficiency. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed investment consists of a financial package to Telecom Argentina S.A. (“Telecom” or the “Company”) for an aggregate amount of up to US$202 million (“m”), comprising (i) an A loan, for IFC’s own account, in an amount of up to US$50m; (ii) a B loan, for the account of the participants, in an amount of up to US$148m; and (iii) an overlay interest rate swap for a loan equivalent exposure of up to US$4m.

The total Project cost is estimated at US$300m, which will be financed with a combination of internal cash generated by the Company, and the financial package provided by IFC. The proceeds will partly finance Telecom’s capital expenditure plan for the next two years, to expand and enhance mobile and fixed broadband coverage in Argentina and to upgrade its existing network.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Telecom Argentina S.A. Undisclosed Communications

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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